As the 8
October 2023 deadline approaches for activating the new financial
promotions regime for digital assets, the UK’s Financial Conduct Authority
(FCA) issued its last advisory warning today (Thursday), urging crypto
companies targeting UK consumers to brace for the forthcoming regulatory
adjustments.
The UK
Government has recently enacted legislation to regulate the promotion of
cryptoassets to consumers. The move aims to protect Britons from making
high-risk investments without adequate information. The new financial promotion
regime will apply to all firms marketing crypto assets in the UK, including
those based overseas.
In light of the approaching date for implementing new regulations and the fact that cryptocurrency companies are facing ‘significant challenges‘ in preparing for their rollout, the FCA issued a final warning. The authors of the warning are Lucy Castledine, the Director of Consumer Investment, and Matthew Long, the Director of Payments and digital Assets, both at the Supervision, Policy and Competition Department of the FCA.
According
to the warning, firms that believe they will be in breach of the new
regulations must urgently reconsider their position. The FCA strongly
recommends that firms seek legal advice to avoid committing a criminal offense
and exposing themselves to potential enforcement action. The new regime is not
intended to harm consumers by restricting their access to…
